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NMI HOLDINGS INC (NMIH) Stock Fundamental Analysis

NASDAQ:NMIH - Nasdaq - US6292093050 - Common Stock

37.74  -0.02 (-0.05%)

Fundamental Rating

6

Taking everything into account, NMIH scores 6 out of 10 in our fundamental rating. NMIH was compared to 101 industry peers in the Financial Services industry. NMIH has an excellent profitability rating, but there are some minor concerns on its financial health. NMIH has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year NMIH was profitable.
NMIH had a positive operating cash flow in the past year.
NMIH had positive earnings in each of the past 5 years.
NMIH had a positive operating cash flow in each of the past 5 years.
NMIH Yearly Net Income VS EBIT VS OCF VS FCFNMIH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

1.2 Ratios

Looking at the Return On Assets, with a value of 10.76%, NMIH belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
With a decent Return On Equity value of 16.28%, NMIH is doing good in the industry, outperforming 75.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.02%, NMIH belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NMIH is above the industry average of 7.84%.
The last Return On Invested Capital (12.02%) for NMIH is above the 3 year average (12.00%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.76%
ROE 16.28%
ROIC 12.02%
ROA(3y)10.68%
ROA(5y)10.51%
ROE(3y)16.54%
ROE(5y)16.13%
ROIC(3y)12%
ROIC(5y)11.78%
NMIH Yearly ROA, ROE, ROICNMIH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

1.3 Margins

NMIH has a Profit Margin of 56.20%. This is amongst the best in the industry. NMIH outperforms 94.06% of its industry peers.
In the last couple of years the Profit Margin of NMIH has grown nicely.
Looking at the Operating Margin, with a value of 77.94%, NMIH belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
NMIH's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 77.94%
PM (TTM) 56.2%
GM N/A
OM growth 3Y11.59%
OM growth 5Y6.77%
PM growth 3Y11.99%
PM growth 5Y7.23%
GM growth 3YN/A
GM growth 5YN/A
NMIH Yearly Profit, Operating, Gross MarginsNMIH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NMIH is creating some value.
The number of shares outstanding for NMIH has been reduced compared to 1 year ago.
The number of shares outstanding for NMIH has been increased compared to 5 years ago.
Compared to 1 year ago, NMIH has an improved debt to assets ratio.
NMIH Yearly Shares OutstandingNMIH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
NMIH Yearly Total Debt VS Total AssetsNMIH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

NMIH has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.09, NMIH belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
NMIH has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NMIH (0.19) is better than 70.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.09
Altman-Z N/A
ROIC/WACC1.36
WACC8.84%
NMIH Yearly LT Debt VS Equity VS FCFNMIH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
NMIH Yearly Current Assets VS Current LiabilitesNMIH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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7

3. Growth

3.1 Past

NMIH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.33%, which is quite impressive.
NMIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.26% yearly.
NMIH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.38%.
The Revenue has been growing by 16.06% on average over the past years. This is quite good.
EPS 1Y (TTM)20.33%
EPS 3Y20.22%
EPS 5Y18.26%
EPS Q2Q%15%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y10.14%
Revenue growth 5Y16.06%
Sales Q2Q%10.19%

3.2 Future

Based on estimates for the next years, NMIH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
Based on estimates for the next years, NMIH will show a quite strong growth in Revenue. The Revenue will grow by 11.99% on average per year.
EPS Next Y21.03%
EPS Next 2Y12.36%
EPS Next 3Y11.24%
EPS Next 5Y10.29%
Revenue Next Year12.45%
Revenue Next 2Y9.78%
Revenue Next 3Y9.14%
Revenue Next 5Y11.99%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
NMIH Yearly Revenue VS EstimatesNMIH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
NMIH Yearly EPS VS EstimatesNMIH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4

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8

4. Valuation

4.1 Price/Earnings Ratio

NMIH is valuated reasonably with a Price/Earnings ratio of 8.50.
Based on the Price/Earnings ratio, NMIH is valued a bit cheaper than the industry average as 78.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, NMIH is valued rather cheaply.
NMIH is valuated cheaply with a Price/Forward Earnings ratio of 7.79.
NMIH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NMIH is cheaper than 76.24% of the companies in the same industry.
NMIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 8.5
Fwd PE 7.79
NMIH Price Earnings VS Forward Price EarningsNMIH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NMIH is valued cheaper than 90.10% of the companies in the same industry.
86.14% of the companies in the same industry are more expensive than NMIH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.84
EV/EBITDA 6.44
NMIH Per share dataNMIH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

NMIH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NMIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.4
PEG (5Y)0.47
EPS Next 2Y12.36%
EPS Next 3Y11.24%

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0

5. Dividend

5.1 Amount

No dividends for NMIH!.
Industry RankSector Rank
Dividend Yield N/A

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NMI HOLDINGS INC

NASDAQ:NMIH (1/22/2025, 9:37:06 AM)

37.74

-0.02 (-0.05%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners100.79%
Inst Owner Change-0.97%
Ins Owners1.31%
Ins Owner Change-3.45%
Market Cap2.99B
Analysts81.25
Price Target44.37 (17.57%)
Short Float %1.72%
Short Ratio2.66
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.77%
Min EPS beat(2)-0.71%
Max EPS beat(2)12.26%
EPS beat(4)3
Avg EPS beat(4)5.58%
Min EPS beat(4)-0.71%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)5.3%
EPS beat(12)11
Avg EPS beat(12)5.51%
EPS beat(16)14
Avg EPS beat(16)5.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.3%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-3%
Min Revenue beat(4)-4.14%
Max Revenue beat(4)-2.03%
Revenue beat(8)1
Avg Revenue beat(8)-2.2%
Revenue beat(12)5
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-0.85%
PT rev (3m)1.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 8.5
Fwd PE 7.79
P/S 4.7
P/FCF 7.84
P/OCF 7.7
P/B 1.36
P/tB 1.36
EV/EBITDA 6.44
EPS(TTM)4.44
EY11.76%
EPS(NY)4.85
Fwd EY12.84%
FCF(TTM)4.81
FCFY12.75%
OCF(TTM)4.9
OCFY12.99%
SpS8.04
BVpS27.74
TBVpS27.7
PEG (NY)0.4
PEG (5Y)0.47
Profitability
Industry RankSector Rank
ROA 10.76%
ROE 16.28%
ROCE 15.44%
ROIC 12.02%
ROICexc 12.54%
ROICexgc 13.94%
OM 77.94%
PM (TTM) 56.2%
GM N/A
FCFM 59.9%
ROA(3y)10.68%
ROA(5y)10.51%
ROE(3y)16.54%
ROE(5y)16.13%
ROIC(3y)12%
ROIC(5y)11.78%
ROICexc(3y)12.34%
ROICexc(5y)12.19%
ROICexgc(3y)13.48%
ROICexgc(5y)13.07%
ROCE(3y)15.42%
ROCE(5y)15.14%
ROICexcg growth 3Y12.55%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y10.06%
ROICexc growth 5Y1.94%
OM growth 3Y11.59%
OM growth 5Y6.77%
PM growth 3Y11.99%
PM growth 5Y7.23%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.09
Debt/EBITDA 0.82
Cap/Depr 58.11%
Cap/Sales 1.1%
Interest Coverage 33.71
Cash Conversion 76.41%
Profit Quality 106.59%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.84%
ROIC/WACC1.36
Cap/Depr(3y)93.07%
Cap/Depr(5y)101.99%
Cap/Sales(3y)2.05%
Cap/Sales(5y)2.32%
Profit Quality(3y)114.17%
Profit Quality(5y)119.57%
High Growth Momentum
Growth
EPS 1Y (TTM)20.33%
EPS 3Y20.22%
EPS 5Y18.26%
EPS Q2Q%15%
EPS Next Y21.03%
EPS Next 2Y12.36%
EPS Next 3Y11.24%
EPS Next 5Y10.29%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y10.14%
Revenue growth 5Y16.06%
Sales Q2Q%10.19%
Revenue Next Year12.45%
Revenue Next 2Y9.78%
Revenue Next 3Y9.14%
Revenue Next 5Y11.99%
EBIT growth 1Y14.06%
EBIT growth 3Y22.91%
EBIT growth 5Y23.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.92%
FCF growth 3Y11.51%
FCF growth 5Y19.32%
OCF growth 1Y19.01%
OCF growth 3Y10.7%
OCF growth 5Y18.62%